Fostering Pay Transparency In Your Organization

In case you missed it, as a Federal Contractor, you and your company are obligated to foster pay transparency by letting  your employees know their rights under the Pay Transparency Nondiscrimination Provision.   At a minimum you are required to include the provision in employee manuals and handbooks as well as post with other employee rights information.  The following is copied directly from the Department of Labor’s website and provides guidance to your obligations.

Office of Federal Contract Compliance Programs (OFCCP) 

Pay Transparency Nondiscrimination Provision

Every employer covered by Executive Order 11246, as amended, is required to post the Pay Transparency Nondiscrimination Provision and include it in employee manuals and handbooks. The provision provides applicants and employees notice that the employer will not discriminate against them for inquiring about, discussing or disclosing their pay or, in certain circumstances, the pay of their co-workers.

Because OFCCP believes that uniform use of the nondiscrimination provision is necessary to ensure consistency and clarity in the information provided to applicants and employees, contractors must, at a minimum, use the language provided in the nondiscrimination provision provided below to satisfy both dissemination requirements. Of course, nothing limits a contractor from providing additional information to their employees about their rights and obligations.

Posting Requirement

The posting requirement may be accomplished by posting the provision electronically or by posting a copy of the provision in conspicuous places available for employees and applicants. In order to facilitate the implementation of this requirement, OFCCP has created two versions of the nondiscrimination provision.

The first version is formatted to be posted electronically or printed and posted on the employer’s premises. It includes the OFCCP logo and contact information.

The second version includes the required, prescribed language only without formatting. At a minimum, contractors must use this prescribed language.

Employee Manuals and Handbooks

In addition to the posting requirement, employers covered by Executive Order 11246 must incorporate the nondiscrimination provision into their existing manuals or handbooks. Again, employers must, at a minimum, use the unformatted version.

Please note that this page provides general information. It is not intended to substitute for the actual law and regulations regarding the program described herein.

Note from Biddle:  Ensuring pay equity is a social and legal concern.  If you have potential concerns about pay equity in your organization or would like to know more about conducting a pay equity study, please feel free to give our experts a call or join us at the BCGi Summit where we will be diving into the intricacies of compensation (pay equity) analysis.

Have questions?

A Biddle Consulting Group representative will be happy to discuss any questions you have about this post or other AAP/EEO compliance concerns. Call us at (800) 999-0438 or send an email to staff@biddle.com.

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